Foreign Investors Pull $1 Billion from Turkish Bonds in Three Weeks

Foreign investors sold more than $1 billion in Turkish debt securities over three consecutive weeks, according to weekly securities data from the Turkish Central Bank (TCMB).

Foreign investors recorded net sales of $1.008 billion in government debt bonds and $826 million in private sector bonds during the three-week period ending October 2, bringing total outflows from both categories to $1.8 billion. Selling pressure peaked in the week ending September 18 as the fund crisis intensified, while the net position in Turkish lira-denominated assets over the three weeks reached $1.77 billion in selling direction.

In the week ending October 2 alone, net sales in government bonds reached $484.7 million, while private sector bonds saw $60 million in sales, along with $189.9 million in equities.

In contrast, local residents raised their foreign currency deposit balances during the same week, in a continuing upward trend.

Analysts believe that the continued decline in the stock market this week is an indication that foreign outflows have not stopped, and Turkish Central Bank data for the current week will reveal the extent of additional losses.